Tesla has resolved a racial discrimination lawsuit with Owen Diaz, a, African American employee who prevailed in two trials over allegations of racist discrimination.
(Photo : Sean Gallup/Getty Images)
Tesla electric cars stand outside the Tesla Gigafactory on March 07, 2024 near Gruenheide, Germany. Tesla has announced that it is suspending production at the Gruenheide factory until the end of next week due to the recent sabotage of an electricity pylon that is connected to the plant. A leftist activists association called the "Vulkan Group" ("Vulkangruppe") has claimed responsibility for the sabotage.
Reaching a Settlement
Initially awarded $3.2 million in damages by a federal jury, Tesla has reached a settlement with Owen Diaz, a Black worker who won two trials over racial discrimination. Representatives from Diaz's legal team at the California Civil Rights Law Group confirmed the resolution through CNBC.
Diaz is an African American employee who served as an elevator operator at the company's Fremont, California plant back in 2015. Lawrence Organ, an attorney from the California Civil Rights Law Group representing Diaz, conveyed that the parties have reached a mutually agreeable resolution of their conflicts.
Organ emphasized the remarkable bravery demonstrated by Owen Diaz in challenging a corporate giant like Tesla. He underscored the importance of individuals being willing to confront such challenges for civil rights laws to be effective.
While the legal battle may have concluded for Diaz, Organ emphasized that there is still significant work ahead for Tesla in fostering an inclusive workplace environment.
Organ expressed his belief that if Elon Musk publicly addressed the issue and made a commitment to his employees regarding intolerance of such behavior, the discriminatory conduct would cease.
Despite significant verdicts and years of litigation, including a nine-figure verdict and another in the seven-figure range, no such statement has been forthcoming from Musk. Organ found it puzzling why such behavior persists at Tesla, a company seen as a symbol of futuristic innovation, while its actions reflect a discriminatory past.
Denying Accusations
Tesla faces legal action from the U.S. Equal Employment Opportunity Commission (EEOC), alleging the company's tolerance of pervasive racial harassment against its Black employees and retaliation against those who spoke out against it.
Denying the accusations, Tesla has characterized the EEOC's claims as a misrepresentation, citing its history of providing equal employment opportunities.
Diaz provided testimony in a federal court in San Francisco, detailing the pervasive racial harassment experienced by himself and fellow Black colleagues at Tesla.
He recounted instances of being subjected to racial slurs, feeling physically threatened, and encountering racist graffiti in factory restrooms. Diaz recounted an incident where his Tesla coworkers left a racist depiction in his workspace.
The drawing resembled Inki the Caveman, a character from a 1950s cartoon known for its offensive portrayal of a Black boy adorned with exaggerated features, including large lips, a loincloth, earrings, and a bone in his hair.
He shared how he once encouraged his son to join Tesla, only to regret it later when his son also experienced a racially charged environment at the workplace.
During his initial trial, Diaz and his legal team convinced the jury that he had faced severe racial discrimination at Tesla and that the company had not taken sufficient measures to stop and prevent such behavior, resulting in a substantial verdict of $137 million, inclusive of punitive damages.
After Judge William H. Orrick lowered the jury's initial award to $15 million, both Diaz and Tesla pursued a retrial to determine the final damages. Despite the reduction, Diaz emerged victorious once more, obtaining a final verdict of $3.2 million.
